Obama says letting U.S. taxes rise would hurt world economy

WASHINGTON Wed Nov 28, 2012 8:42pm GMT

U.S. President Barack Obama (C) speaks during a meeting with members of his cabinet at the White House in Washington November 28, 2012. REUTERS/Kevin Lamarque

U.S. President Barack Obama (C) speaks during a meeting with members of his cabinet at the White House in Washington November 28, 2012.

Credit: Reuters/Kevin Lamarque

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WASHINGTON (Reuters) - President Barack Obama said on Wednesday that failure to avoid looming "fiscal cliff" tax increases would reverberate beyond U.S. borders.

"It would be bad for the economy, it would be bad for those families, in fact it would be bad for the world economy," Obama told reporters at the White House as he met with his cabinet.

Obama and congressional leaders are negotiating over how to avoid approximately $600 billion in tax hikes and spending cuts that would begin in 2013 and that analysts say would push the U.S. economy back into recession.

The president has proposed maintaining existing tax rates for all but the top two income tax brackets, but congressional Republicans are opposed to any tax increases.

(Reporting By Jeff Mason, writing by Mark Felsenthal; Editing by Sandra Maler)

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Comments (1)
Raymond.Vermont wrote:
Much easier to simply add the tax burden on China…

Nov 28, 2012 9:33pm GMT  --  Report as abuse
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